2012-2013 UPDATE COURSE

WHAT IS “GREEN” BUILDING?

Outline
Introduction
Background
ENERGY STAR Program
Green Building
Conclusion

Learning Objective: Upon completing this section, licensees should have a better
understanding of the primary rating standards used in the United States to certify structures as
energy efficient or green and the distinction between a structure that has been certified as “energy
efficient” versus a structure that has been certified as “green” or “green built.”

INTRODUCTION
In recent years, an increasing percentage of the population has become more aware of and
concerned about various environmental and ecological issues, including stewardship of our
natural resources and man’s impact on his surroundings. This increased sensitivity and
awareness has spurred some consumers to assess factors such as energy efficiency and
environmental impact when comparing various products to purchase and has prompted some
vendors to engage in “greenwashing.” The EPA defines “greenwashing” as “[T]he practice of
advertising a product or process as “green” or environmentally friendly, when the product
really is not, or does not achieve the advertised marketing claims. A false or misleading picture
of environmental friendliness used to conceal or obscure damaging activities.”

It has only been within the past two to three decades that attempts have been made to
qualify or define what is meant by labels such as “energy efficient” and “green built” to provide
guidelines for industry and consumers. This section will explore those labels — what they
mean, by what measurement standards, and who certifies compliance. Why? It is important
that licensees understand that certain terms may have a specific meaning and licensees must
use such terms accurately and appropriately when marketing or describing a property’s
features to avoid negligent misrepresentations. While numerous “green” standards may exist,
whether at the international, state or local level, this Section will mention what are believed to be

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the primary evaluation standards used in the United States to assess energy efficiency, as well as
green construction in residential and commercial structures. The common elements of the
various standards discussed herein are that they were all developed by consensus and require
third party verification of compliance to be certified at any given level.

This section will not explore the evolution of the green/energy efficient movement, nor
provide an economic assessment of the cost/benefits of utilizing energy efficient or green
building concepts, nor review various financial incentives available to consumers, of which there
are many. There are numerous resources available to licensees who are interested in
learning more about energy efficiency, green building, sustainability and renewable energy
sources, including various Real Estate Commission approved continuing education courses
on these topics ranging from 4 to 8 hours, longer courses offering specific designations in
this area, and a host of websites providing a wealth of information, some of which are
referenced at the end of this section.

BACKGROUND
Social consciousness in the United States concerning “green” considerations in buildings
and lifestyles began emerging in the 1960s and 1970s, spurred in part by the spike in oil prices in
the 1970s, coupled with a growing environmental movement that championed conservation,
stewardship of resources, and consideration of alternate renewable energy sources, rather than
reliance on traditional depletable fossil fuels. Various entities, both governmental and private,
engaged in research to explore ways of improving energy efficiency and to find and harness
sources of renewable energy. While the primary research focus originally was energy efficiency,
some pioneers began experimenting with contemporary green building concepts.

Nonetheless, it was not until the early 1990s that formal attempts were made to develop
standards that could be applied more objectively to evaluate how energy efficient a product or
structure was and what minimum standards must be met before a structure could be called
“green.” These early attempts to promulgate guidelines or standards included the following:
! The American Institute of Architects (AIA) formed a Committee on the Environment in
1989 and published an Environmental Resource Guide in 1992, funded in part by the
Environmental Protection Agency;

! The U.S. Environmental Protection Agency (EPA) in conjunction with the U.S.
Department of Energy (DOE) introduced the ENERGY STAR program in 1992.

! The U.S. Green Building Council (USGBC) was founded in 1993 and published its first
version of Leadership in Energy and Environmental Design (LEED) in 1998.

! The National Association of Home Builders (NAHB), which had introduced the term
“green building” in the 1980s, formed a Green Building Subcommittee in 1998, held its
first annual green building conference in 1999, and developed the Model Green Home
Building Guidelines in 2006.

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 The federal government also initiated several programs during the first decade of this
century promoting energy efficient and sustainable building practices in federal buildings. This
history is contained in a report by the Office of the Federal Environmental Executive titled “The
Federal Commitment to Green Building: Experiences and Expectations” which may be found on
the EPA’s website. The EPA formed a Green Building Workgroup in July 2003 to consolidate
the various programs within the Agency that worked with builders and developers to improve
environmental performance. It issued its “Green Building Strategy” in 2008 to guide the
Agency’s green building initiatives.

The common threads linking all of these initiatives regardless of source were improving
energy efficiency to reduce greenhouse gas emissions and the corresponding “carbon
footprint” while realizing economic savings from decreased utility costs over the life of the
product and conserving our non-renewable energy resources, e.g., fossil fuels.

What are “Greenhouse Gases” (GHG)?

Approximately 30% of the sunlight hitting the Earth’s atmosphere is deflected back into
outer space. The remaining 70% reaches the Earth’s surface, warming it and heating the
atmosphere, and is then reflected upward again as slow-moving energy called “infrared
radiation.” The heat from this infrared radiation is absorbed by gases that slow the heat’s
diffusion back into space, creating what has been dubbed the “greenhouse effect.” These
thermal gases are necessary to sustain human habitation and our current ecosystem, as scientists
estimate that without these thermal gases the average temperature on Earth would be 54 degrees
Fahrenheit cooler.

The most abundant naturally occurring “greenhouse gases” in order of their prevalence
are:
! water vapor (H2O)
! carbon dioxide (CO2)
! methane (CH4)
! nitrous oxide (N2O)
! ozone (O3)

While the foregoing gases are naturally present in our atmosphere, they also result from human
activities. For example, both carbon dioxide and nitrous oxide are emitted into the atmosphere
whenever solid waste or fossil fuels (oil, coal and natural gas) are burned. Burning wood
products releases carbon dioxide. Methane is released whenever organic waste decomposes,
whether in landfills or as a result of livestock farming, as well as during the production and
transport of fossil fuels. Both carbon dioxide and methane are colorless and odorless (but
methane is flammable). Nitrous oxide is colorless, but has a sweet odor, and is released from
the production of livestock feed containing large amounts of nitrogen based fertilizers, as well as
from livestock waste.

In addition to the naturally occurring greenhouse gases, there is a group of synthetic

greenhouse gases known as fluorinated gases created by various industrial processes. These
include hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).
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Hydrofluorocarbons have replaced chlorofluorocarbons (CFCs) which were banned in the 1970s
due to their adverse impact on the Earth’s ozone layer. While HFCs do not have the same effect
on the ozone layer, they still are a potent greenhouse gas because of their ability to retain heat.

Understand that not all greenhouse gases are equal in their heat-retaining capabilities.
HFCs and PFCs are the most heat-absorbent gases and are sometimes referred to as High Global
Warming Potential gases (high GWP gases), but in the naturally-occurring category, nitrous
oxide absorbs 270 times more heat per molecule than carbon dioxide, and methane absorbs 21
times more heat per molecule than carbon dioxide, although carbon dioxide still accounts for
60% of the greenhouse effect.

International Code Council

In 1994, three separate model code organizations together formed the International Code
Council (ICC), a non-profit organization, for the purpose of developing national, if not
international, model codes to provide uniform standards. Originally focused on building safety,
the ICC’s purview over the years has expanded from building codes to presently include 15
model codes addressing such subjects as energy conservation, mechanical, residential, green
construction, zoning, private sewage disposal and numerous other topics. (See
www.iccsafe.org.)

The last complete energy conservation code formulated by the ICC is the 2009
International Energy Conservation Code (IECC), although it is being revised in 2012. The
2009 IECC was the springboard for the most recent North Carolina Energy Conservation
Code (NCECC) promulgated in late 2010 and effective January 1, 2012. The 2012 NCECC
used the 2009 IECC as a guide, but is not identical, as the NCECC contains amendments and
revisions that are specific to North Carolina. The new Code requires improved insulation levels,
window performance and building envelope air leakage reduction. The North Carolina Code
also includes a “High Efficiency Residential Option” (HERO) appendix that delivers 15-20%
more energy efficiency than the base 2009 IECC. Reducing one’s energy consumption by 15%
is equivalent to parking your car for two months, or planting 200 trees.

Home Energy Rating System (HERS)

The Home Energy Rating System (HERS) provides a national standard for measuring the
energy efficiency of a home and was developed by RESNET, the Residential Energy Services
Network, a 501(c)(3) corporation officially incorporated in 2002 into which its predecessor, the
non-profit Energy Rated Homes of America was merged. RESNET’s members include state
and national governmental agencies, energy companies, rating providers, academics, and research
institutes, among others. RESNET defines the procedures for rating new and existing homes,
training and certifying raters, and managing a nationally consistent quality assurance process.
All ENERGY STAR certified homes are evaluated by independent raters supervised by a
RESNET-accredited HERS Provider.

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 How Rating Determined
A HERS rating is a number that indicates the energy efficiency of a home and has been
likened to the “miles per gallon” ratings for automobiles. The rating is determined by dividing
the projected energy consumption of the subject home by the projected energy consumption of a
reference home and multiplying by 100. The “reference home” is a home of the same
dimensions in the same climate zone that is built in compliance with the standards of the model
energy code and has an assigned HERS index of 100. The software used to calculate the energy
consumption of a home considers the areas and insulation values of the walls, windows, ceilings,
floors, etc. (often referred to as “the thermal envelope”), the efficiency of the heating, cooling
and hot water systems, the lighting systems, the appliances, and energy loss through air
infiltration and duct leakage.

Under HERS, homes are rated on a scale of 0-150 with the reference home rated at 100.
Most existing homes fall between 120-150. In residential evaluations, the higher the
number, the less efficient the structure. Each point on the scale is equivalent to a 1%
reduction in energy consumption. Thus, a house with a HERS rating of 70 would be 30% more
energy efficient than the reference home built according to the applicable energy code and 70%
more efficient than an existing home with a 140 HERS rating. HERS raters often will conduct a
“Blower Door test” as well as duct blasting tests to gauge how tight a house is sealed. HERS
certified raters are used by various programs to determine eligibility for certifications, including
both ENERGY STAR and the NAHB’s National Green Building Standards program. NOTE
however, that a property may have a HERS rating but not be certified as either ENERGY STAR
Qualified or “green-built.”

ENERGY STAR PROGRAM

The EPA first introduced the ENERGY STAR program in 1992 as a voluntary labeling
program to identify and promote energy efficient products in hopes of reducing greenhouse gas
emissions. Initially, the program applied only to computers and monitors, but expanded
significantly over the next three years to include office equipment and heating and cooling
systems. In 1996, the EPA partnered with the DOE to develop guidelines for various product
categories, and ultimately expanded its ratings programs to include residences and commercial
and industrial buildings.

According to the EPA’s 2010 ENERGY STAR report, the program now encompasses
more than 40,000 products in more than 60 categories including major appliances, office
equipment, lighting, home electronics, and heating and cooling systems. Additionally, the
ENERGY STAR program has established energy performance rating systems for new homes,
existing homes, commercial and institutional buildings, as well as manufacturing facilities.
Note that ENERGY STAR focuses SOLELY on assessing energy efficiency and performance.
It does not evaluate other aspects or features typically considered in “green building” that will be
discussed later. Information concerning the rating standards for any given category or product
may be found at www.energystar.gov.

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 The ENERGY STAR website frequently refers to “green building” or “green homes”
which, unfortunately, may give the public the impression that ENERGY STAR certification
means a building is “green-built,” which technically is not true. The criteria for qualifying a
structure as “green-built” go far beyond considerations of energy efficiency alone. The
ENERGY STAR website acknowledges this reality in subtle statements such as “energy
efficiency is the place to start” when looking for a green home and that a homeowner will have
addressed “two critical green home elements” when purchasing an ENERGY STAR Qualified
home that is also certified under ENERGY STAR’s IndoorairPlus standard that assesses indoor
air quality.

Qualifications and Assurances

Even though ENERGY STAR qualification technically is not synonymous with green
built, it still is highly significant and hugely important as consumers rightfully anticipate reaping
savings on their utility bills in addition to the feel-good aspect of environmental stewardship
through more efficient, and thus less, energy consumption, conserving the planet’s resources and
lessening carbon pollutants. The ENERGY STAR label confirms that one of the major goals of
green building, e.g., energy efficiency, has been accomplished. ENERGY STAR is the only
government backed certification program for energy efficiency and it independently
establishes the qualification criteria in the various product categories to earn the ENERGY
STAR label. Typically, in the residential arena, to qualify for ENERGY STAR certification, a
house must be at least 15% more energy efficient than one built in compliance with the
applicable energy conservation code, as the code establishes the minimum requirements with
which all new construction must comply. What structures are eligible for ENERGY STAR
qualification, what does the certification mean, and what may the consumer reasonably expect?

Residential Structures
Any residential structure three stories or less may apply for ENERGY STAR
certification including (per EPA’s website): “site-constructed homes, attached or detached
homes, single or low-rise multi-family buildings, manufactured homes, systems-built homes (e.g.,
SIP or modular), log homes, existing homes, or retrofitted homes.” A home may qualify for an
ENERGY STAR rating by following a “Prescriptive Path” if it meets or is less than the
“Benchmark Home Size.” The benchmark home size currently is 1000 square feet for a one
bedroom home, and adds 600 square feet for each additional bedroom, e.g., 2 bedrooms = 1600
SF, 3 bedrooms = 2200SF, etc. If the “conditioned floor area” (square footage) exceeds the
benchmark home size, then the home must qualify via the “Performance Path.” The
Performance Path utilizes energy modeling to determine an ENERGY STAR HERS Index Target
which is different for each home and depends on the size, location and orientation of the subject
home.

Features of an ENERGY STAR qualified home

The EPA lists six components that comprise an ENERGY STAR evaluation. If the label
is granted, then consumers know that the features listed below have been tested and certified as

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performing satisfactorily according to the standards required by whatever ENERGY STAR
Version was applied to evaluate the home. There have been at least 4-5 versions of the
standards and the ENERGY STAR label will indicate certification under a particular ENERGY
STAR Version X. ENERGY STAR Version 3.0 rating criteria was just released and became
effective January 1, 2012. Each successive version establishes more stringent standards.
Copies of the current and prior ENERGY STAR Versions may be found at www.energystar.gov.

Residences for which permits were first issued after 1/1/2012 must comply with Version
3.0. Structures initially permitted between 4/1/2011 and 12/31/2011 may be qualified under
ENERGY STAR Version 2.5 IF the final inspection occurred prior to July 1, 2012. If the final
inspection occurred after July 1, 2012, the structure must satisfy Version 3.0 standards to be
qualified. Thus, as a practical matter, all homes seeking ENERGY STAR certification must
now satisfy ENERGY STAR Version 3.0 standards. If granted, the ENERGY STAR label is to
be affixed to the circuit breaker box in the home and the Certificate of qualification under
ENERGY STAR Version 3.0 (at present) is given to the owner. The energy efficiency of a home
constructed in compliance with both the 2012 NCECC and the optional High Efficiency
Residential Option (HERO) is believed to be comparable to that of a home certified under
ENERGY STAR Version 3.0.

According to the national ENERGY STAR website, any residential property bearing the
ENERGY STAR label will possess the following characteristics.

1. Effective Insulation. The floors, walls and attic will have been inspected to ensure that
not only was the proper grade of insulation used, but that it was properly installed as
well. “Proper installation” requires that the insulation be in contact with all surrounding
surfaces, front, back, top, bottom, and both sides, to be fully effective. Effective
insulation promotes uniform temperatures throughout the house, physical comfort, and
reduced energy costs.

2. High-Performance Windows. Energy efficient windows are mandatory; often they

have protective coatings and more efficient frame assemblies that help keep heat in
during winter and out during summer in addition to blocking ultraviolet sunlight that may
discolor carpets, rugs, furnishings or artwork.

3. Tight Construction and Ducts. Perhaps one of the most important factors in achieving
energy efficiency is a well built, well-sealed home. Energy efficient appliances or
HVAC systems cannot offset a house that’s built like a sieve. Thus, sealing around all
openings (doors, windows, ductwork, recessed light canisters, cracks, etc.) within the
structure’s “envelope” is critical to reduce, if not eliminate, leaks, drafts, moisture, dust,
pollen and noise. A tightly sealed structure with controlled air exchanges maximizes
energy efficiency, thereby reducing utility bills, and substantially improves both comfort
and indoor air quality. The standards also require the rater to assess the adequacy of the
flashing and moisture barriers to keep water from roofs, walls and foundations to improve
both durability and indoor air quality.

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 4. Efficient Heating and Cooling Equipment. While a tightly sealed house will require
less heating and cooling because less energy is escaping, the HVAC system in an
ENERGY STAR qualified home must also be energy efficient. Such systems cost less to
operate, are quieter, reduce indoor humidity, improve the comfort of the home, and often
are more durable, requiring less maintenance than standard models.

5. Lighting and Appliances. While ENERGY STAR qualified homes most likely will
also have other ENERGY STAR certified products, such as refrigerators, stoves,
dishwashers, washing machines, lighting fixtures, ventilation fans and compact
fluorescent bulbs, all of which would result in even greater energy efficiency, it does not
appear that such features are absolutely required, if a home otherwise meets the stated
energy efficient standards.

6. Third-Party Verification. Only verifications performed by an approved HERS rater

who certifies that the structure meets or surpasses the ENERGY STAR standards dictated
by the applicable Version are accepted. A builder may qualify through either the
“Prescriptive Path” or through the “Performance Path,” as mentioned earlier, and the
procedures for each differ. Builders must be approved ENERGY STAR partners with a
written partnership agreement, and HVAC contractors must be credentialed by an
EPA-recognized HVAC Quality Installation Training & Oversight Organization.
Information regarding Version 3 training, standards and applicability may be found at
www.resnet.us/energystar.

Commercial Buildings
Commercial buildings may also qualify for ENERGY STAR certification through the
ENERGY STAR Commercial Builders Program, although the criteria are not as exact or
precise as those established for the residential certification process. In the commercial/industrial
arena, the ENERGY STAR website offers a “Portfolio Manager,” a tool that allows managers of
certain types of buildings to input various information concerning the property and obtain an
energy performance score. This rating is calculated on a scale of 1 to 100 based on surveys of
similar buildings in the national population. The peer group is identified through the
Commercial Building Energy Consumption Survey (CBECS) conducted every four years by the
Department of Energy.

The survey gathers information from those who agree to participate and submit the
requested information regarding actual energy consumption of buildings in various categories
and the scale is then devised from this information for the next four years. A score of 50 means
the building is performing energy-wise at the industry average. Contrary to the rating system
for residential buildings where lower scores are more energy efficient, when rating commercial
buildings the higher the score the more energy efficient the building is. A score of 75 or
higher is required to obtain an ENERGY STAR label for a commercial building. The
factors considered in the equation are the type of building, its operating characteristics, and its
energy data. Presumably, the benchmark will continually rise as more and more commercial
structures improve their energy efficiency, thereby increasing the “industry average” in a given
category.
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 Type of Building
To be eligible to obtain an energy performance rating, more than 50% of the building’s
gross floor space, excluding parking lots and garages, must fall within one of the following
fifteen categories, namely:

! Bank/financial institution ! Courthouse

! Data Center ! Hospital (general medical and surgical)
! Hotel ! House of Worship
! Elementary/Primary School (K-12) ! Medical Office
! Municipal Wastewater Treatment Plant ! Office
! Residence Hall/Dormitory ! Retail Store
! Senior Care Facility ! Supermarket
! Warehouse (refrigerated and non-refrigerated)

Several other limitations may also apply depending on what other space types are within the
building that do not fall in the primary use category, but these additional limitations are detailed
and well beyond the scope of this discussion. One enters data into the Portfolio Manager tool
concerning key operating characteristics for each space use in one’s building. The standards set
minimum and maximum thresholds for certain values to “make sure that your building falls into
an operation pattern consistent with that of the peer group used for comparison.” One example
of a threshold minimum is a requirement that:

1) all buildings minimally must have 5000 square feet except: a) banks and houses of
worship may be as small as 1000 square feet; b) hospitals must be at least 20,000 square
feet; and c) data centers have no minimum square footage requirements;
and
2) the facility must be in operation at least 30 hours per week except a) houses of worship
and b) buildings for which no hours of operation are requested, e.g., hospitals and hotels.

To obtain an energy performance rating, one must input energy data from all active meters for an
11 consecutive month period.

ENERGY STAR Statistics

How many ENERGY STAR Qualified buildings are there? The following statistics are
taken from the 2010 ENERGY STAR Annual Report which may be found at
www.energystar.gov. .

New Home Construction: 126,000 ENERGY STAR Qualified homes were built in
2010, representing 25% of housing starts in the United States. Total ENERGY STAR
Qualified homes increased from approximately 25,000 in 2000 to more than 1.2 million
as of 2010 and the number of ENERGY STAR building partners increased from 1600 in
2000 to 8400 in 2010.

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 Home Improvement: The ENERGY STAR home performance improvement program
was implemented in 2001 or 2002. In 2010 alone 35,000 homes were retrofitted through
this program, bringing the total to 110,000 homes. This program is being transferred
from EPA management to the Department of Energy. The EPA offers an online Home
Energy Yardstick that allows owners to compare their home’s energy use to that of others
across the country. Nearly 100,000 consumers used this interactive tool in 2010.

Commercial Buildings: The number of existing commercial buildings with an ENERGY

STAR score increased from 4200 in 2000 to more than 200,000 in 2010 and eligible
building types increased from only 2 in 2000 to 13 in 2010 (now 15). Between 2000 and
2010, the number of existing commercial buildings that had been certified grew from 545
to more than 12,600. Whereas there were no new commercial buildings designed to earn
the ENERGY STAR designation in 2000, as of 2010, there were more than 300.

Total estimated utility savings from all ENERGY STAR products in 2010 was $20 billion,
resulting in reduced greenhouse gas emissions equivalent to 38 million vehicles.

GREEN BUILDING
While energy efficiency is a key component of a green built structure, the requirements to
be certified as “green built” go well beyond energy efficiency alone. Thus one could say that all
green built structures will be energy efficient, but not all energy efficient buildings are “green
built.” The EPA launched a Green Building Strategy in 2008 the purpose of which is to
“facilitate the mainstream adoption of effective green building practices” through public
education and strengthening the scientific, technical, economic and institutional foundations of
green building.

Traditionally, building codes have focused more on human safety and how the
environment affects buildings. Green building standards consider how buildings impact or
affect the environment. Buildings account for almost 40% of the total energy usage in the
United States and 68% of total electricity consumption. They generate 40% of the national
carbon dioxide emissions and consume 12% of the freshwater usage.

The EPA defines “green building” as, among other things, “the practice of creating
structures and using processes that are environmentally responsible and resource-efficient
throughout a building’s life cycle from siting to design, construction, operation, maintenance,
renovation, and deconstruction. This practice expands and complements the classical building
design concerns of economy, utility, durability and comfort. Green building is also known as a
sustainable or high performance building.”

The goal of green building is to reduce the overall impact of buildings on the natural
environment and human health by:

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 ! efficiently using energy, water, and other resources;
! reducing waste, pollution and environmental degradation; and
! protecting occupant health and improving employee productivity.

The environmental benefits include protecting biodiversity and ecosystems, improving air
and water quality, reducing waste streams, and conserving and restoring natural resources.
Economic benefits include reduced operating costs, optimizing life-cycle economic performance,
improved occupant productivity, and expanding markets for green products and services. While
green building concepts may be integrated into buildings at any stage, the most significant
benefits are realized when the design and construction teams take an integrated approach at the
outset of a building project.

Existing Rating Standards

The first standards governing residential green building, titled Model Green Home
Building Guidelines, were created in 2005 by the National Association of Home Builders and
were developed in consensus with 64 other interested parties. Originally, the Guidelines applied
only to new residential construction. These model guidelines became the springboard for the
development of the International Code Council’s (ICC) 700-2008 National Green Building
Standards (NGBS), which were approved by the American National Standards Institute (ANSI)
in 2009. Certifications of compliance are performed by the NAHB Research Center. The
ANSI-approved National Green Building Standards have now replaced the former Guidelines.

National Green Building Standards (NGBS)

The NGBS establish design and construction practices for residential projects including:
• new detached single-family homes, townhomes, duplexes, tri-plexes and quad-plexes;
• new multi-family residential buildings;
• residential portions of mixed-use buildings;
• single-family home additions that equal less than 75% of existing square footage;
• renovations of single-family or multi-family buildings;
• renovations and additions to single-family homes;
• renovations of pre-1980 residential buildings;
• renovations changing non-residential buildings into residential uses;
• individual sections or phases of residential or mixed-use developments, as well as the
entire development or subdivision.

Note that renovations and additions to existing residences, which comprise approximately 90%
of the housing market, may now be rated, as well as new construction. The NGBS criteria rate
buildings in six categories, namely:

1) lot and site development that minimizes disruptions and preserves open space;

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 2) resource efficiency considers materials and techniques used, such as wood alternatives,
recycled building materials, and sustainably harvested lumber, as well as the local
availability of these materials and costs to transport;
3) energy efficiency reviews the level of insulation used, the efficiency of the HVAC
systems, and the presence of energy efficient appliances, lighting, and high performance
windows;
4) water efficiency/conservation assesses use of water-efficient appliances and fixtures,
filtration systems, as well as whether the landscaping is low maintenance or drought
resistant;
5) indoor environmental quality considers the HVAC equipment, formaldehyde-free
finishes, low-allergen materials, and use of products with minimum off-gassing or low
volatile organic compounds (VOCs);
6) homeowner education through manuals and operating guides.

A minimum number of points must be scored in each category in order to receive one of
four green certifications - either bronze, silver, gold or emerald, with bronze being the lowest
and emerald the highest certification. While there are some mandatory requirements that must
be satisfied, the standards prefer to give designers, builders and owners a range of options or
features from which to choose with each option having a corresponding point value. The
specifications are incredibly detailed and complex and will not be reviewed here. However, the
energy efficiency component of the rating must exceed the standards set in the 2009 International
Energy Conservation Code for each level as follows: Bronze - 15% more efficient; Silver = 30%
more efficient; Gold = 50% more efficient, and Emerald = 60% more efficient.

Leadership in Energy and Environmental Design (LEED)

The LEED standards originally were created by the United States Green Building Council
(USGBC) through a consensus based process in 2000. The standards are a nationally accepted
benchmark for the design, construction and operation of high performance green buildings.
Originally applicable to commercial buildings only, the standards have expanded to include new
construction, major renovations, existing buildings, commercial interiors, schools and more
recently, homes. Rating systems for neighborhood development, retail and healthcare are
currently being pilot tested. As with the NGBS, LEED is a point based system. Projects are
rated in seven categories and must satisfy certain prerequisites, in addition to amassing the
necessary points. There are five primary categories and two optional.

What LEED Measures

The five primary environmental LEED rating categories and the features they assess as
described on the USGBC website are:
1) sustainable sites: encourages building on previously developed land or infill sites near
existing infrastructure and away from environmentally-sensitive areas, promotes control
of stormwater runoff and reduction of erosion, light pollution, heat island effect and
construction related pollution, encourages regionally appropriate landscaping and smart
transportation choices.

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 2) water efficiency: encourages more efficient appliances, fixtures and fittings inside and
water-conscious landscaping outside.

3) energy and atmosphere: encourages a variety of energy-wise strategies including

efficient design and construction, monitoring energy use, installing efficient appliances,
systems and lighting, and using renewable and clean energy sources generated either
onsite or offsite.

4) materials and resources: encourages use of sustainably grown, harvested, produced and
transported materials and reducing waste through reuse and recycling.

5) indoor environmental quality: promotes strategies that improve indoor air and provide
access to natural light, outdoor views and improved acoustics.

There are a total of 100 base points maximum from the above five categories. Additionally, a
maximum of six points may also be earned in the optional Innovation in Design category which
addresses sustainable building expertise as well as design measures not covered under the first
five categories and rewards projects for including a LEED Accredited Professional on the team.
The standards also allow up to four points in the other optional “regional credits” category for
projects that address environmental issues facing their region. The LEED rating system is
scheduled to be reviewed and possibly updated in 2012. The four current levels of LEED
certification and the points necessary to attain each level are: Certified = 40 - 49 points; Silver =
50 - 59 points; Gold = 60 - 79 points; Platinum = 80 points or more.

LEED certification is provided by independent third parties who validate a building’s

compliance with LEED specifications. The certification process is administered by the Green
Building Certification Institute (GBCI) through a network of professional third-party certification
bodies. The GBCI also offers education and a professional credentialing program on three
levels: LEED Green Associate, LEED Accredited Professional, and LEED Accredited
Professional Fellow. More information on the credentialing program may be found at
www.gbci.org.

Green Globes
Green Globes provides an alternate certification program to LEED. It was introduced to
the United States by the Green Building Initiative (GBI) in 2004 and is patterned after a
Canadian green building rating system that was first developed in the United Kingdom and
known as BREEAM, Building Research Establishment Environmental Assessment Method. In
the United States, Green Globes offers two assessment tools, one for new construction that has
been available since 2005, and a recently introduced evaluation tool for Continual Improvement
of Existing Buildings (CIEB). Both are intended to evaluate commercial buildings, rather than
residential. The Green Building Initiative was accredited as a standards developer by the
American National Standards Institute in 2005 and is in the process of seeking ANSI approval of
its Green Buildings Assessment Protocol for Commercial Buildings.

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 Green Globes is touted as being more user-friendly and easier than LEED certification.
It is a web-based interactive green building assessment tool that is questionnaire-driven. Users
answer a series of questions with a combination of yes/no, not-applicable, multiple choice or date
insertion responses. Questions become more complex as one proceeds through the assessment.
Upon completing the questionnaire, the system generates a written report with suggested
improvements and references to supplemental information. Online training is available on
GBI’s website (www.thegbi.org) or personal training may be arranged for a fee.

There is a two-stage third-party assessment process that includes review of various

documents as well as an on-site walk-through of the building. The evaluations are conducted by
GBI authorized and Green Globes trained assessors who typically are required to have experience
in design, engineering, energy analysis/management, construction and/or facility management.
The assessors review the completed questionnaire and attempt to confirm that the points awarded
by the program are supported by documentary evidence, as well as a site visit to inspect and
interview personnel. Scoring is based on a 1000 point maximum and a building minimally must
obtain 350 points to qualify for a one green globe rating. Commercial buildings may earn a
rating of one, two, three or four green globes. As with all assessment programs, there are
attendant fees.

CONCLUSION
Almost any building, whether new or existing, residential or commercial, is now capable
of being rated as to how energy efficient it is, and whether it is eligible for a “green built”
certification. Questions to ask include not only what rating standards were utilized, but what
version of those standards, who performed the certification, what the resulting score was and
what documentation exists to verify the certification. All of the rating programs discussed
herein require compliance certification by third party verifiers, although the educational
background and training of those verifiers will vary depending on what agency or group is
issuing the approval. Credentialing requirements for any given program may be found on the
approving body’s website.

Certification under any program will entail certain fees or costs, depending on the
program. All focus on a total systems approach, recognizing that each system supports and
affects other systems for an integrated unified building. The most critical features of a building
that impact how energy efficient it is are how well sealed it is around all openings (doors,
windows, walls, ducts, light fixtures, exhaust vents, etc.), appropriate grade insulation properly
installed, efficient heating and cooling systems and high performance windows. Licensees
should be mindful that while energy efficiency is one of the primary goals of green building, an
energy efficient building may not necessarily be green built. Licensees should choose their
words carefully in describing the attributes of any given property. As previously stated, all
green built structures will be energy efficient, but not all energy efficient structures may be
certified as “green built.”

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 Licensees must understand the significance of and difference between these “terms of art”
and use them correctly. Before a licensee makes any assertions (a.k.a. “representations”) about
a property or its features in any forum, the licensee should request written verification of the
ENERGY STAR or green built certification from the owner. The certification should answer
the above questions as to what version of whose standards were applied and who certified
compliance. As with most important documentation, a prudent licensee will retain a copy of the
certification in his/her transaction file, even if not technically required by the record retention
rule. While new construction, whether residential or commercial, either qualifies or doesn’t as
energy efficient or green built, structures that have been renovated, remodeled or additions made
may not be as easy to rate or describe. Having a copy of the applicable certification in the
transaction file evidences reasonable discovery by a licensee and helps dispel doubt.

CAUTION: Understand that merely because a property has ENERGY STAR

rated appliances, lighting or HVAC systems does NOT mean the property has
been certified as ENERGY STAR Qualified. Further, while some builders,
developers, or owners may advertise that a structure has been “built to ENERGY
STAR standards” or “built to LEED specifications” or “built to NGBS standards,”
this does not mean that the property has been certified as qualifying for the
applicable designation. In other words, “built to ENERGY STAR standards”
does not mean that the structure has been certified as ENERGY STAR Qualified
and a consumer who then applies for the utility credit for being ENERGY STAR
Qualified will be very disappointed to learn they are not eligible for the credit,
because the property is not in fact ENERGY STAR Qualified. Always look for
the ENERGY STAR label or obtain other written evidence that the desired
designation has actually been awarded.

As more consumers become interested in purchasing energy efficient products or

buildings that have been certified as green-built, licensees who are more educated as to the
characteristics of each and the costs/benefits over the life cycle of the building will have an
advantage. The websites below are excellent resources from which to gain information
regarding various tax incentives, rebates and special loan programs for energy efficient homes
and products, as well as cost comparisons to build or renovate a building to be energy efficient.
A list of all LEED certified projects, as well as registered projects (i.e., pending certification), in
the United States or any specific state may be found at
www.usgbc.org/LEED/Project/CertifiedProjectList.aspx for those who are curious as to what
buildings in their area might be LEED certified.

One example of a LEED certified building of which some licensees may be aware is the
National Association of REALTORS® building in Washington DC. Additionally, appended
hereto is a description of some of the sustainability features incorporated into the North Carolina
American Institute of Architects’ Center for Architecture and Design located in Raleigh, NC
(www.cfadnc.org) that has applied for a platinum LEED certification, as well as features
incorporated into the Wells Fargo Duke Energy Center building in Charlotte, which has a
platinum LEED certification.
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 Lastly, licensees (or at least REALTOR members) should be aware that some MLS
organizations have incorporated a “Green Fields” category within TEMPO. It is believed that
the Triangle, Triad and Charlotte MLS systems have this field available. Reprinted is the cover
page from Green Fields. Explanations of the “Green Building Features,” “Green Building
Certifications,” and “Green Building HERS Rating” are further explained within the TEMPO
program, but are not reprinted herein. NAR also offers various green certification programs and
initiatives, such as “Greening the MLS” to its members.

Recommended Websites
www.energystar.gov National ENERGY STAR program
www.ncenergystar.org North Carolina Energy Efficiency Alliance based at ASU*
www.epa.gov/greenbuilding U.S. Environmental Protection Agency
www.doe.gov U.S. Dept of Energy
www.usgbc.org U.S. Green Building Council (LEED)
www.resnet.us Residential Energy Services Network (certifies HERS raters)
www.nahbgreen.org NAHB Resource Center: National Green Building Stds & Certifications
www.thegbi.org Green Building Initiative: Green Globe standards
www.greenmadesimple.tv Videos, incentive programs, and energy saving tips
www.advancedenergy.com Advanced Energy - international corporation
www.dsireusa.org Database of State incentives for renewable energy & energy efficiency
www.ncsc.ncsu.edu NC Solar Center at NCSU
www.irecusa.org Interstate Renewable Energy Council

* This organization was formed approximately 2 years ago with a federal grant that has now
expired; whether the organization will continue to exist is unknown, but there is a wealth of
information, training videos and other resources on this website.

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Green Fields in Some MLS Systems

The green movement is growing. More buyers are interested in acquiring a

property with green features. Sellers who have invested in green features want
prospective buyers to be aware of these benefits. Some MLSs have added data fields
to their MLS system so agents may accurately describe and advertise the green
attributes of a property. These attributes generally fall into the following categories:
Green Building Features, Green Building Certifications, and Green Building HERS
Rating.
MLS data fields are generally searchable so agents working with buyers are able
to easily find homes with green features and/or certifications. This also permits
appraisers to consider green features when determining the value of a home.
When selecting any of the “green” options in an MLS listing to describe or find a
property, it is important to understand the meaning of each option. Below is a list of
the green fields available in one N.C. MLS system.

Green Building Features

Adv. Framing/Concrete Const.
ENERGY STAR Light Fixtures
ENERGY STAR Appliance(s)
Engineered Wood Products
EPA WaterSense Plumb. Fixt.
Fresh Air Ventilation
Geo Ther. Heat Sys. (Clsd Loop)
Infill Lot
No-Low VOC/Paints, Sealants, Varn
Photovoltaics-Solar Power
Radiant Heated Floors
Rainwater Collection
Recyled Const/Household Waste
Sealed Combustion Firepl/Woodst
Sealed Crawl Space
Solar Hot Water
Spray Foam Insulation
Tankless Water Heater
Xeriscaping-Drought Resist. Plnts

Green Building Certifications Green Building HERS Rating

NAHB Certified Home 85-80
ENERGY STAR Homes 79-75
GHBT Green Certified Home Below 74
LEED-H Certified
NC Healthy Built Home Certified

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Statistics for the AIA NC Center for Architecture &
Design, Raleigh, NC See www.cfadnc.org for info & photos

The Ten Stations of Sustainability

1. 12 ft Roof Overhang- The roof overhang is 12 feet deep. It provides shade for the upper
floors of the building, especially during the summer months when the sun angle is primarily
overhead. It’s designed to allow the sun to warm the 1st and 2nd floors in the winter months.

2. Down Spout- Every drop of rain that falls on the building’s roof is collected by a gutter
system that includes a 12-inch-diameter steel pipe cut in half and attached along the entire roof.
The gutter collects the water and directs it to the downspout, which spills into collection pool,
then dumps into the bio-retention cell.

3. Wood Siding- The use of wood for this project became a major element in the final design.
Wood siding helps cut down on solar gain, insulates the building, and is relatively low
maintenance. The cypress is local to North Carolina; reclaimed from the Great Dismal Swamp
in Gates County as a result of being felled by hurricanes; milled locally; sent to Greensboro for
finishing; and finally delivered to the building for installation.

4. Rock Wall- The stone wall is a major design element in this project. The stones used are
local to North Carolina and provide an inside-outside connection for the building and landscape.
The wall running north/south creates a division between the parking garden and the planted
garden, while the east/west wall serves to retain the earth on the southern portion of the site,
which allows the building to have a ground level connection to the street at the corner of Peace
and Wilmington Streets.

5. Bio Retention Cell- The bio-retention garden is a key water management system for the
building and site. Planted with magnolia trees and ground cover, it collects water run-off from
the roof of the building and the parking garden and filters it through layers of soil, gravel, and
sand. Water not fully absorbed into the cell to support the plant life is released into the city’s
storm water system in a much cleaner state.

6. Geothermal Wells- This building is completely heated and cooled by the earth through a
geothermal system. Geothermal systems take advantage of the earth’s constant temperature
with a series of pipes that move water from underground to the building. The water transfers the
warmth or chill from the ground to a series of 10 heat pumps that condition the air in the
building. There is a system of 20 wells, each dug to 350 feet beneath the parking lot. By heating
and cooling the building this way, there is an approximate 64% reduction in energy usage.

7. Porous Paver Parker- Rather than paving with asphalt, the parking garden is comprised of
porous pavers that are installed over 3 feet of gravel and engineered fill. This system slows the
flow of water and allows it to percolate into the ground acting as a filter before it is drained into
the city’s storm water system.

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8. Ventilation- Every floor has been designed with a passive system for free flowing air. Doors
and windows have been strategically placed across from each other to create cross-ventilation.
On days with good weather, heating and cooling systems are not needed at all.

9. Green Screen- Shading for a south-facing building is an important design consideration. A

vegetated screen, or “green screen,” is a unique solution utilized on the south window wall of
the multi-purpose room to shield the space from the day-long heat and glare of the direct
southern sun.

10. Location- Located on the north side of downtown Raleigh, this site required the installation
of 34 parking spaces. To accommodate this mandate, the building was positioned on the
northern-most edge on the lot, leaving ample room for parking as well as a beautiful landscape
on the southern side. The building form is also long and thin, allowing for cross ventilation and
access to light on two to three sides in all spaces. The building has two distinct sides. One side
is park-like and looks toward the Government Complex and Capitol building. This is the front
door of AIA North Carolina. The side that faces Peace Street is much more urban with zinc
siding and individual windows. This is a contribution to Raleigh’s growing urban environment,
which is developing around the Center.

Additional Sustainable Features

• The building is sited to allow the majority of the site to be open, green space
• The property is strategically located near public transportation, bus routes and future light
rail
• The building is oriented to catch prevailing breezes, the maximizing natural ventilation
• The building’s open floor plan allows natural lighting and ventilation to reach the entire
interior
• The landscaping uses soils cut from the site.
• Landscaping is irrigated through a drip system which eliminates any water waste
• All landscaping is native to North Carolina
• Zinc, on the north wall and roof, requires little energy to manufacture, is completely
recyclable and averages a virtually maintenance free life span of 80-100 years
• Interior lighting is provided by an energy-efficient Lutron system (www.lutron.com)
• All bathrooms are energy and water efficient
• All interior finishes and furnishing are zero VOC

Center for Architecture and Design by the Numbers

• Total Project cost: $5.4 Million
• Construction cost: $3.2 Million
• Land cost: $800,000
• Soft cost: $1.4 Million
• Building Size: 12,000 Square Feet
• Length: 135 ft.
• Width: 30 ft.
• Floors: 3 floors + basement
• Site Size: .98 Acres
• Parking: City Mandated 34 stalls
• Project Time: 7 years from inception
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• In Kind Donors: 65
• Financing/Funds:
-$3 Million Recovery Zone Facility Bond - Part of ARRA (Stimulus Act) Authorized by
City of Raleigh
-$1.5 Million capital campaign -$600,000 sale of existing facility
-$800,000 In-Kind donations -$335,000 AIA additional Cash

Wells Fargo’s Duke Energy Center Statistics – Charlotte NC

In order for the Duke Energy Center to qualify for LEED Platinum, Wells Fargo and its
predecessor, Wachovia, which began building the tower in 2006, pledged to implement the
green strategies and guidelines set forth by the USGBC throughout the entire lifespan of the
building – from design, to construction, to operation.

Some highlights of the Duke Energy Center’s environmental sustainability efforts

include:

Water efficiency: The Duke Energy Center saves approximately 30 million gallons of water per
year through a combination of rainwater collection, groundwater purification and a 46 percent
reduction of domestic water used in bathrooms.

Energy efficiency: The Duke Energy Center is 22 percent more energy efficient than a
traditionally built tower of comparable size, saving approximately 5 million kilowatt hours per
year, equivalent to the annual energy use of about 450 homes or more than 3,500 metric tons
of greenhouse gas emissions each year, through the use of daylight harvesting blinds that
direct light into the building, lighting controls that respond to the amount of daylight, high
performance glazing on the exterior walls, and highly efficient HVAC systems and controls, all
of which reduce demands on the Duke Energy Center’s lighting and cooling systems.

Other sustainable features: A Green roof is planted with native and adaptive plants, which
reduces the “heat island” effect, reduces heating and cooling loads on the building, mitigates
stormwater runoff, and provides an enjoyable outdoor space for tenants. Also, tenants and
visitors are encouraged to use alternate transportation to get to the Duke Energy Center. The
building provides secure bicycle racks, as well as showers and changing rooms for tenants who
bike to work. It also provides preferred parking for low-emission vehicles, and easy access to
the Charlotte Area Transit System bus and lightrail routes.

During construction of the building, Wachovia/Wells Fargo also took into consideration the
impact of construction activities on both the building site itself and the surrounding city and
region. As a result,
- 75,000 cubic yards of soil were remediated to cleanse and revitalize the land on this
brownfield site.
- 93 percent, or 16, 500 tons, of the construction waste was diverted from landfills.
- 350,000 cubic yards of rock from the site were excavated, crushed, and reused for the
construction of 4 miles of new highway.
- More than 34 percent of the materials used in construction were harvested or extracted and
manufactured regionally, within a 500-mile radius of Charlotte, N.C.

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- Approximately 24 percent of the materials used in construction contain recycled content.
Approximately 50 percent of the wood used in construction is Forest Stewardship Council (FSC)
certified, promoting and supporting sustainably managed forests.
- Materials with low VOC (Volatile Organic Compound) content are used throughout the building
to create a healthier interior environment.
- Recycling areas are an integral part of the building infrastructure, facilitating the collection of
paper, cardboard, metal, plastic and glass.

For more information on this building’s sustainability features, see www.dukeenergycenter.info

and click on Sustainability and the two links contained on that page, including an extremely
educational “Case Study” filled with interesting statistics.

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